|
|
Home Ownership vs. Renting: Comparison of Costs in the Czech Republic
Tláskalová, Andrea ; Hejlová, Hana (advisor) ; Cahlík, Tomáš (referee)
This thesis develops a cost-benefit analysis of ownership versus renting and investigates the net present values of these alternatives within three different investment and consumption strategies. In order to investigate interactions among the variables and to perform a more detailed analysis, microdata on real estate purchase offers and real estate rental offers are used. Due to the size of the real estate market and the diversity of property types, we focus our analysis on the real estates located in Prague. The thesis' results indicate that ownership is more profitable than renting under the conditions of only one group out of twelve. However, the thesis presents values of three key parameters of home ownership costs for which ownership would be equally profitable as renting. Finally, we attempt to explain the price-to-rent ratio using various apartment characteristics. The OLS regression method uncovers negative impact of the ground floor variable and the panel building variable on the ratio, resulting in higher relative affordability of buying when compared to renting. Number of rooms variable, on the contrary, shows positive impact on the ratio and an additional room in an apartment results in lower relative affordability of buying when compared to renting.
|
|
|
Home Ownership vs. Renting: Comparison of Costs in the Czech Republic
Tláskalová, Andrea ; Hejlová, Hana (advisor) ; Cahlík, Tomáš (referee)
This thesis develops a cost-benefit analysis of ownership versus renting and investigates the net present values of these alternatives within three different investment and consumption strategies. In order to investigate interactions among the variables and to perform a more detailed analysis, microdata on real estate purchase offers and real estate rental offers are used. Due to the size of the real estate market and the diversity of property types, we focus our analysis on the real estates located in Prague. The thesis' results indicate that ownership is more profitable than renting under the conditions of only one group out of twelve. However, the thesis presents values of three key parameters of home ownership costs for which ownership would be equally profitable as renting. Finally, we attempt to explain the price-to-rent ratio using various apartment characteristics. The OLS regression method uncovers negative impact of the ground floor variable and the panel building variable on the ratio, resulting in higher relative affordability of buying when compared to renting. Number of rooms variable, on the contrary, shows positive impact on the ratio and an additional room in an apartment results in lower relative affordability of buying when compared to renting.
|
|
|
Housing Price Determinants in the Czech Republic
Markvartová, Lenka ; Hlaváček, Michal (advisor) ; Šolc, Jan (referee)
Housing market was considered stable until housing prices in many countries after global crises rapidly decreased. Still the development of housing prices and its determinants are unique for every country. The goal of this work is to find the factors that affect the housing prices in the Czech Republic using endogenous models. This type of econometric models enables to explore both short and long term relationships. The theoretical part of the work focuses on housing prices monitoring issues and the specific price development in the Czech Republic in comparison to other countries. Furthermore different level and development of housing prices in Prague are discussed. Due to this fact two types of tests are used - for the Czech Republic as a whole and for Prague separately. The variables housing loans included are based on previous results of Czech as well as foreign studies. Thanks to detected long term relationships an endogenous VECM model can be applied. It confirms bidirectional influence of housing prices and housing loan volume. This relationship could not have been analyzed sofar due to relatively short time series which limit the choice of particular models. My results suggest that growth in housing loan volume causes an increase in housing prices with more than one year delay. This effect...
|
guest ::
